11-U.S.C.-749
§749 – Voidable Transfers
Pathway
Title 11 > Chapter 7 > Subchapter III > Section 749
Details
- Reference: Section 749
- Legend: §749 – Voidable Transfers
- USCode Year: 2013
Provision Content
(a) Except as otherwise provided in this section, any transfer of property that, but for such transfer, would have been customer property, may be avoided by the trustee, and such property shall be treated as customer property, if and to the extent that the trustee avoids such transfer under section 544, 545, 547, 548, or 549 of this title. For the purpose of such sections, the property so transferred shall be deemed to have been property of the debtor and, if such transfer was made to a customer or for a customers benefit, such customer shall be deemed, for the purposes of this section, to have been a creditor.
(b) Notwithstanding sections 544, 545, 547, 548, and 549 of this title, the trustee may not avoid a transfer made before seven days after the order for relief if such transfer is approved by the Commission by rule or order, either before or after such transfer, and if such transfer is—
(1) a transfer of a securities contract entered into or carried by or through the debtor on behalf of a customer, and of any cash, security, or other property margining or securing such securities contract; or
(2) the liquidation of a securities contract entered into or carried by or through the debtor on behalf of a customer.
(Pub. L. 95–598, Nov. 6, 1978, 92 Stat. 2614; Pub. L. 97–222, §14, July 27, 1982, 96 Stat. 238; Pub. L. 111–16, §2(8), May 7, 2009, 123 Stat. 1607.)
Historical and Revision Notes
senate report no. 95–989
Section 749 indicates that if the trustee avoids a transfer, property recovered is customer property to any extent it would have been customer property but for the transfer. The section clarifies that a customer who receives a transfer of property of the debtor is a creditor and that property in a customers account is property of a creditor for purposes of the avoiding powers.
Amendments
2009—Subsec. (b). Pub. L. 111–16 substituted seven days for five days in introductory provisions.
1982—Pub. L. 97–222 substituted (a) Except as otherwise provided in this section, any for Any, and but for except, inserted such property, substituted or 549 for 549, or 724(a), and added subsec. (b).
Effective Date of 2009 Amendment
Amendment by Pub. L. 111–16 effective Dec. 1, 2009, see section 7 of Pub. L. 111–16, set out as a note under section 109 of this title.
U.S. Encyclopedia of Law Coverage
Subchapter III – Stockbroker Liquidation in the Legal Encyclopedia: Bankruptcy
In this entry about Subchapter III – Stockbroker Liquidation, find legal reference material, bibliographies and premiere content related to bankruptcy in the American Encyclopedia of Law, presenting a comprehensive view of the United States bankruptcy-specific issues, written by authorities in the field.
11-U.S.C.-741 in the Legal Encyclopedia: Liquidation
In this entry about 11-U.S.C.-741, find legal reference material, bibliographies and premiere content related to liquidation in the American Encyclopedia of Law, presenting a comprehensive view of the United States liquidation-specific issues, written by authorities in the field.
Leave a Reply